Infinite Banking concept

[DHK]

my problem is with our industry taking younger average or below average income earners & new savers & hard selling them that they should stop saving in employer plans, stop paying ahead on debts & mortages & instead put $500 or 1k per month into a WL or UL/IUL/VUL (especially when most are not designed to be overfunded). for many, it is a commission play and easier commission play than trying to call on high income, high net worth or business owners who are more suspicious than the average American letting a life only rep come in saying they are a "financial advisor". not you DHK, but you have to admit there are a lot of reps, agents, GA, & IMO's doing this & leaving a lot of carnage considering most of the plans are not being funded or even still active within a few years for those average consumers.

All good & great conversation for sure while we are all sheltered in place

I ABSOLUTELY, 1,000% AGREE!!

Yes, there are a bunch of reps that do this by parroting what they've heard without studying it, and they just maximize commissions for themselves and not setting up the client for success.

Btw, my target demographic for this is primarily business owners and higher net worth... however, anybody that hates paying taxes is also a potential client.

The way Tom teaches how to prospect - it's not about their circumstances. It's "do you believe what I believe" - as taught by Simon Sinek.

Tom helped me to find my 'why' - as it was essentially hidden from me consciously. He helped me bring it out so I could articulate it and live it on purpose.

www.theexplanationofservices.com

In everything I do, I believe in championing the individual, to help them reach their maximum potential and removing the barriers that keep them from realizing that potential in their lives.

That's my why - and it explains why I've been so drawn to these concepts.

"The day your why can be explicitly explained so that it benefits somebody else more than it benefits you... you have arrived."



Anyway, yes, this concept can be dangerous in the wrong and inexperienced hands.

 

[DHK]

This type of statement hurts our industry.

You are using assumptions on future tax rates, the performance of a product, future interest rates, future dividend rates and it also assumes that people are putting all of their money in a 401k/traditional IRA.

If you're really targeting wealthy people, the majority of their assets will be in vehicles like real estate, non-qual brokerage accounts, their businesses, and other investments that have varying tax rates.

To say that 1m > 3m because the 1m is in a life insurance policy is disingenuous.

That's an assumption.

And no, that statement doesn't hurt our industry. The fact that it's true and it isn't being talked about... that hurts the consumer. And I care more about the consumer than the industry - if that was a competing interest.

Let me know what you think after reading Bryan Bloom's books. Don't take my word for it.

 

[Tahoe Ray]

Let me know what you think after reading Bryan Bloom's books. Don't take my word for it.

Tell me which one of his books you believe best hammers home the point and I'll read it so that I can try to understand your perspective.

 

[DHK]

You see, the difference in this thread is this:

When *I* heard this concept... I got mad. I got mad that no one had ever told me this stuff before. I got mad because I didn't realize just how insidious the tax code can be against those who retire with their money in the places we are taught to save our money in. I didn't try to defend what I had been doing before - I was looking to find ways to communicate this to other people so they can benefit.

When YOU (collectively) are hearing this... you are justifying to yourself why what you've been taught and what you're doing is still the better way to go. You want me to prove - on YOUR terms - that I'm right.

That's not the answer. The answer is in understanding the problem. Until the problem is big enough, the solution won't matter.

I'm not looking to change anyone's beliefs, but it's a belief system that you're dealing with... not me. I'm just embodying it and giving it a focus for you to challenge it.

One of the top producers in our group was a Fortune 100 general counsel attorney. It took him a full year or so to do his own research. Then he came on board and did about a million of commissionable premium in less than 9 months on a part-time basis. Now he's full time - but he had to go through his own 'awakening' and self-study.

I won't prove anything to you, but promote an opportunity to hear about it for yourselves.

The next webinar is on May 12th.

 

[DHK]

Tell me which one of his books you believe best hammers home the point and I'll read it so that I can try to understand your perspective.

He has three. For agents, I'd go straight to the Capital Equivalent Value book. It's only $10 for the kindle version.

Amazon product ASIN B0842YHBT6

 

[DHK]

This MDRT blog article fits this thread:

Selling life insurance: Focus on needs to smash the stigma | MDRT Blog

 

[Allen Trent]

This MDRT blog article fits this thread:

Selling life insurance: Focus on needs to smash the stigma | MDRT Blog

I like it, but it needs a couple of corrections. This is where the novice agents get off the rails because they don't understand the distinct differences of these words & mis-speak. These items as written wouldnt be allowed in any product brochures or advertising See below:

 

[Lloyds of Lubbock]

You can take words and numbers and make them say what you desire.
I am not disagreeing with the above but it could also say:
Tax deferred and possibly tax free distribution.
Tax free loan need a big * POLICY MUST STAY INFORCE.

 

[Allen Trent]

You can take words and numbers and make them say what you desire.
I am not disagreeing with the above but it could also say:
Tax deferred and possibly tax free distribution.
Tax free loan need a big * POLICY MUST STAY INFORCE.

for sure. Saw a client with a UL product get a 200k taxable gain notice last year from his policy lapsing. had taken a loan decades ago & it compounded to something like $350k. Also seen some people 1035 policies with large loans no realizing it & get a taxable 1099 because the collateral that had been used to secure the loan from the carrier was gone when surrendered as part of 1035. Luckily it was the mis-steps of the client & other agents, but I still felt terrible for the clients.

 

[Golfnut2112]

for sure. Saw a client with a UL product get a 200k taxable gain notice last year from his policy lapsing. had taken a loan decades ago & it compounded to something like $350k. Also seen some people 1035 policies with large loans no realizing it & get a taxable 1099 because the collateral that had been used to secure the loan from the carrier was gone when surrendered as part of 1035. Luckily it was the mis-steps of the client & other agents, but I still felt terrible for the clients.

That is exactly and probably the biggest reason I don't sell life insurance as an alternative to retirement plans. There are going to be big headaches for the people that actually keep their policies until retirement and start taking loans for income.The writing agent will probably be retired or dead and there is no way the client is going to remember 30 to 50 years after purchase that they need to keep that policy in force to avoid a 1099. I can see some elderly person getting a 5 digit loan interest bill and just cashing the policy in.